InTek Logistics Blog

2026 Freight Market Forecast: Policy Risk, Volatility & 2019 Parallels

Written by Rick LaGore | Dec 24, 2025

Another year is just about in the books, so it's time for the annual reflections and predictions articles across industries - the focus here at InTek is, of course, on freight and logistics. What will the market bring? What factors play the biggest role? Is there reasonable hope for a freight recovery? Read on for our 2026 freight forecast, plus a review of our expectations vs. reality for the past year.

2026 Freight Market Outlook: Market Will Rhyme With 2019

As a high-level summary of the 2026 freight market outlook, the market is increasingly set up for something that feels a lot like 2019. In other words, if you’re looking for a clean, demand-led “turn” in the coming year, the current cycle is sending a different message: choppy, policy-distorted, and prone to “head-fake” rate moves that don’t translate into durable volume growth.

That doesn’t mean 2026 will be a collapse, although it will be for those freight companies that have been on knife’s edge of financial challenges brought on by a depressed freight market that is also plagued with higher operating costs. 

So, our overall thoughts for 2026 boil down to what will likely be a muddle-through year again where the freight market stays active, even busy at times, but not consistently healthy. And with that being the case, we’ve started to see a number of sizable bankruptcies start to hit the tape in the last quarter of 2025 and expect others to come, along with some stressed merger - acquisitions in 2026.

Before we dive in further to the coming year, let's take a glance at the rearview mirror to see how our predictions for the past year turned out for some added context.

Look Back to 2025 Freight Forecast

At the start of 2025, InTek’s base-case freight outlook was cautiously constructive. Coming out of a prolonged downturn that began in earnest in July 2022, we expected the combination of Federal Reserve rate cuts, easing financial conditions, and a gradual recovery in industrial activity to set the stage for a freight rebound in the second half of 2025.

That view was laid out in our 2025 U.S. Freight Market Outlook, published at the end of 2024. At the time, the framework was straightforward and consistent with prior cycles:

  • Monetary easing would eventually support housing, construction, and industrial production.
  • Improving industrial activity would translate into higher freight volumes with a lag.
  • Capacity discipline—already underway—would allow rates to respond once demand stabilized.

In short, we expected late-2025 to mark the transition from bottoming to recovery.

The Inflection Point: Spring 2025

While we expected a 2nd half freight recovery, we had five cautionary notes that could cause our projections to “go off the rails” of which the following four hit the freight market hard:

  • Tariffs and Trade Wars: Policy shifts towards higher tariffs might reduce trade volumes, impacting both imports and exports.
  • Debt-Driven Caution: High corporate debt levels could slow industrial expansion, even with better borrowing conditions.
  • Persistent Inflation: Elevated costs for materials and labor may dampen production and housing activity, while also potentially slowing Federal Reserve rate reductions.
  • Geopolitical Instabilities: Ongoing tensions and trade restrictions may limit access to raw materials and disrupt supply chains. The areas of particular note are the Ukraine - Russia conflict and continuation of the Red Sea vessel restrictions related to the Israel - Hamas conflict.

By March and April of 2025, it became clear that something was off. Freight activity remained uneven, volume growth failed to follow early optimism, and what strength did appear increasingly traced back to policy timing and inventory behavior, not organic demand.

This is where InTek’s commentary, particularly through our blogs, monthly intermodal reports, and my (InTek CEO Rick LaGore’s), LinkedIn posts began to shift.

Instead of framing the market as “late-cycle but improving,” we started highlighting three developments that were becoming impossible to ignore:

  1. Tariff uncertainty was distorting freight demand, encouraging pull-forward behavior rather than sustained shipping activity.
  2. Volumes were soft even as rates occasionally firmed, a warning sign that pricing signals were being driven by capacity attrition and timing effects, not demand growth.
  3. Inventories were being managed defensively, with shippers working down stock rather than rebuilding aggressively.

By late spring, our internal language, and increasingly our external commentary, reflected a more cautious stance. The freight recovery we expected to begin taking shape in 2H 2025 was not materializing in the data and had truly “gone off the rails”.

So, 2025 was not a complete collapse, but more of the same seen since July 2022, with signs that 2026 would look like 2019 because of the distortions we saw in 2018-2019 would rhyme with our expectations to 2025-2026.

With the look back complete, below is a more detailed review of what to expect in 2026 - and why 2019 echoes loudly.

2026 Freight Forecast in Detail

The Core Analogy: 2019 Was a Stall, Not a Crash

The reason 2019 is such a useful comparison to where we are now is that it wasn’t a classic consumer/credit recession, therefore the freight market didn’t implode; it stagnated in an economy that stayed on its feet.

In 2019, the freight cycle got distorted by trade policies of 2018 and inventory timing:

  • Shippers pulled freight forward ahead of tariff actions against China.

  • That created a temporary “strength” signal (volumes, utilization, pricing pockets).

  • Then demand fell into an “air pocket” as inventories were worked down.

You can see the same “rates vs. volumes” disconnect showing up again. For example, Cass’ November 2025 report showed shipments down 7.6% y/y while expenditures were only down 1.2% y/y, and the Cass Truckload Linehaul Index was up 2.2% y/y, which illustrates a pattern of weak volume but firmer implied pricing. 

That “pricing can firm without a true demand rebound” is exactly the kind of environment that produced repeated false expectations of a recovery in 2019.

Why 2026 Looks Policy-Led (Again): Tariffs, Trade Uncertainty, and Pull-Forward “Payback”

When freight is being driven by policy deadlines, it behaves differently:

  • Demand becomes lumpy.
  • Peak season becomes less reliable.
  • Forecasting error increases for shippers and carriers.

Recent port and trade reporting strongly supports your pull-forward/payback narrative. Reuters reported that Port of Los Angeles imports fell 11.5% y/y in November 2025 after earlier inventory stocking to get ahead of tariffs and noted ongoing uncertainty around tariff policy.

The Port of Los Angeles itself has also described tariff-driven volatility and weakening volumes tied to trade policy uncertainty.

What this tends to produce in 2026:

  • Front-loaded freight ahead of policy deadlines (select lanes, commodities, import flows)
  • Softness takes hold once that inventory is positioned.
  • Market can feel tight in spots, while the broader system remains underwhelmed.

And importantly, when tariffs raise prices, they can reduce demand. In Reuters coverage, Michigan State’s Jason Miller put it plainly: higher prices mean less demand, and less demand means less freight. 

Why Fed Rate Cuts Won’t “Fix Freight” by Themselves

One of the most important lessons from 2019: the Fed can ease, and freight can still stagnate.

The Fed cut rates three times in 2019 … July, September, and October …yet freight didn’t snap into a durable recovery, because the constraints were trade uncertainty, industrial softness, and inventory behavior, not simply the cost of capital.

That’s why the right mental model for 2026 is:

  • Monetary policy can improve the backdrop.
  • Policy-driven demand distortion can still keep freight in low gear.
  • Market freight rebound will have to until inventories rebuild and industrial demand improves meaningfully.

ACT’s market commentary echoes the “defensive into 2026” stance, tying the outlook to tariff authority uncertainty and capacity contraction vs. demand rebound. 

The Market Mechanic That Matters Most in 2026: Inventory Behavior

Inventory cycles quietly control freight cycles.

After pull-forward waves, businesses tend to:

  • Protect cash.
  • Reduce ordering volatility.
  • Run leaner replenishment patterns.

That produces:

  • Sporadic bursts of freight.
  • Followed by stretches where demand doesn’t follow through.

Until we see a shift, you should expect what you described perfectly: busy but not healthy.

2026 Expectations by Freight Mode

With the macro view behind us, let's take a look at what we exepct to see in the individual freight modes in 2026.

Truckload in 2026: Tightening Supply, But a Gradual Pricing Story

The Likely Pattern

Truckload in 2026 is set up to improve primarily because capacity continues to rationalize, not because demand suddenly booms.

That creates a very specific outcome:

  • More volatility.
  • More regional tightness.
  • Gradual contract improvement.
  • Few signs of a broad, clean upcycle.

Why Spot Rate Spikes Will Keep Happening in 2026

Spot will remain headline-grabbing because it’s sensitive to short-term disruptions:

  • Weather.
  • Holiday calendar effects.
  • Temporary network imbalance.
  • Enforcement/regional capacity shocks.
  • Quarter end pushes.

A good example is the recent DAT report showing winter weather and holiday positioning can lift spot pricing meaningfully in short windows. 

That’s real, but it’s not the same as a sustained demand-led recovery.

What to Expect from TL Pricing

For 2026, the most probable base case is:

  • Contract rates improve modestly over time.
  • Spot continues to swing around events.
  • Carrier behavior stays cautious (capital discipline, replacement vs. expansion mindset).

Translation: we can expect tightness in the market, but without getting healthy demand across the freight market.

Rail & Intermodal in 2026: Early Warning Lights, Mixed Fundamentals

Rail and intermodal often flash the signal earlier because they are tightly tied to:

  • Imports.
  • Retail replenishment.
  • Industrial production trends.
  • Broader goods movement.

AAR (Association of American Railroads) weekly data began showing intermodal running below prior-year levels in multiple weeks starting in the 4th quarter of 2025. The decreases will lead to the overall performance to be essentially flat versus prior year.

The decreases have not been significant, but they align with a market that’s cooling after pull-forward and cautious inventory posture.

The Key 2026 Intermodal Dynamic

Even if service improves (fluidity, dwell, fewer disruptions), intermodal can remain muted if:

  • Imports remain soft after pull-forward.
  • Retailers stay cautious because cosumer confidence is sinking.
  • Industrial production remains sluggish.

That’s why 2026 may look like:

  • Domestic intermodal more resilient than international-linked flows.
  • Pricing pressured until truckload tightens enough to pull intermodal higher.
  • Continued lane-by-lane dispersion (some corridors tight, others soft).

LTL in 2026: Price Discipline Intact, But Volume Still the Problem

LTL can maintain pricing power longer than TL during soft patches because:

  • Networks are engineered.
  • Carriers manage density and capacity more actively.
  • Contracts reprice on different cycles.

But the limiter remains tonnage / shipment weight / industrial activity. In an environment where:

  • Manufacturing is sluggish.
  • Restocking is cautious.
  • Shippers consolidate shipments when possible to improve freight budgets.

In other words, LTL continues to grind it out in 2026.

Ocean in 2026: Overcapacity Risk + Tariff Volatility = Shipper-Friendly (Most of the Time)

Ocean is highly exposed to tariff pull-forward dynamics:

  • The 2025 ordering surges cause sharp drop-offs in 2026.
    • Another factor is we're starting to see global supply chains moving away from the USA.
  • Frequent carrier GRIs that struggle to stick without demand.
    • The latest example was the attempted GRI that did not stick in the 4th quarter of 2025.

Recent reporting by Reuters emphasized that tariff shifts and front-loading created a roller coaster dynamic for major gateways, with expectations that trade cools into 2026.

Base case for 2026 ocean:

  • Capacity generally available.
  • Pricing power inconsistent.
  • Pockets of disruption possible (labor, geopolitics, routing constraints).
  • More shipper-favorable pricing and service than the pandemic period.

If the Rea Sea corridor opens up, as ocean carriers start to push their equipment through the new global supply chain, the overcapacity will flood the market and put even more downward pressure on pricing.

One consideration that may play out comes from the global supply chain moving away from the USA, where limited capacity is needed for North America causing cancelled sailings, increase pricing and cause ocean capacity to become less reliable.

Another circumstance coming from this would be less opportunity for the intermodal re-positioning programs, as fewer containers will be pushed inland.

The Two Most Common “Mistakes” People Will Make About 2026

Mistake #1: “Rates are up, so recovery is here.”

In policy-led cycles, rates can rise because supply shrinks, even while demand is soft. Cass’ recent pattern (weak shipments, firmer linehaul) is the textbook tell of this situation.

Mistake #2: “If the Fed cuts, freight rebounds.”

2019 is the proof case: the Fed cut three times, but freight didn’t sustainably heal.

What to Watch in 2026: The “Confirmations,” Not the Headlines

If you want to know whether 2026 is setting up to be a 2019-style stall, watch for confirmation across the following that is tracked by monthly stats I compile within my Monthly Intermodal Report

A) Volume confirmation

  • Cass shipments stabilizing and turning positive y/y for multiple months, not just one print.
  • LTL shipment/tonnage improving, not only TL absorbing freight.

Cass Freight Index – Shipments
Cass Freight Index – Expenditures

B) Inventory-cycle confirmation

  • Evidence of broad-based inventory rebuild, not just cautious replenishment.
  • Fewer pull-forward then payback patterns around policy deadlines or quarter ending periods.
  • Inventory-to-sale ratio remains high

Inventory-to-Sales Ratio

C) Multimodal confirmation

  • Rail/intermodal improving alongside TL, not lagging while TL tightens.
  • Imports normalizing without sharp demand drop-offs.

D) ISM Manufacturing

  • Latest report (December 2025) reported the 9th consecutive month of contraction.
  • New orders remain weak for the 3rd consecutive month.

     

ISM Manufacturing PMI

E) Industrial Production

  • Manufacturing stagnation persists.
  • Tariff exposure weighs on gods sector.
Industrial Production (YoY)

F) NAICS 3327 - Machine Shops

  • Key industrial proxy remains soft signaling limited near-term freight upsaide.
NAICS 3327 – Machine Shops

G) LMI Statistics

  • Freight metrics within the LMI have remained weak (outside the latest report which indicated pricing popped). Other stats coming from CASS and DAT point to be pricing pressure being more seasonal in nature.
Logistics Managers' Index

H) Housing Starts

  • Elevated mortgage rates continue to suppress new construction.
Housing Starts (SAAR)

I) Ton-Miles

  • Current soft demand environment is a deep, structural contraction within the freight economy.
  • Ton-miles dropped to pre-pandemic levels.

J) Consumer Confidence

  • Latest reading (November 2025) tumbled to lowest level since April 2025 after moving sideways for several month.
Consumer Confidence Index

K) BLS Nonfarm Payrolls

  • Softening labor conditions. 
  • Unemployment rate increasing.
BLS Nonfarm Payroll

L) Ports of LA / LB Volumes

  • GRIs and tariff timing created late-fall pull-forward that has not turned to a slowdown in latest data showing.
Port of LA/LB Volumes

Practical Planning Implications for Shippers and Carriers

For Shippers

  • Treat tariff-driven surges as timing distortions, not demand signals.
  • Keep carrier networks redundant with the regional risk of choppy markets.
  • Use 2026 to lock in smart contract coverage where service matters most, but don’t overreact to short-lived spot spikes.

For carriers / 3PLs / IMCs

  • Assume more lane dispersion: your network advantage will come from execution and procurement, not a rising tide.

  • Build playbooks for:
    • Event-driven surges (weather, holidays)
    • Policy deadline surges (tariffs)
    • And troughs (inventory digestion)

The Bottom Line: 2026 Is Likely a “Transition Year,” Not a Breakout Year

Your framing holds up under public data: 2026 is shaping up like 2019 with a market where:

  • Policy and inventories distort the signals.
  • Rates can firm without true demand strength.
  • “Busy” doesn’t automatically translate to healthy.

Until the cycle becomes demand-led and volume-led, expect a year of:

  • Episodic tightness.
  • Uneven mode performance.
  • And a recovery that feels delayed and conditional, not obvious and broad.

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